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Motion to approve or deny loan request <br />Terms and conditions of loan approval <br />5.3.Notification of borrowers <br />Upon approval by the IRF Board, staff prepares an Offer of Loan letter signed <br />by the Board Chairman which is sent to the applicant. This letter states the <br />amount of the loan being offered and the terms and conditions under which the <br />offer is being made, <br />C. LOAN CLOSING AND DISBURSEMENT PROCEDURES <br />1. General Closing Requirements <br />A potential borrower will be required to sign documents stating compliance <br />with all applicable Federal requirements including, but not limited to, <br />compliance to Davis -Bacon wage requirements (if applicable), EDA's non - <br />relocation requirements, Civil Rights Act requirements and assurance of <br />benefits to low income persons. <br />Per federal regulations, all RLF loan documents shall include language stating <br />that the RLF borrower shall protect and hold the Federal government harmless <br />from and against all liabilities that the Federal government may incur as a result <br />of providing the RLF Grant to assist directly or indirectly in site preparation or <br />construction, as well as the direct or indirect renovation or repair of any facility <br />or site. <br />Bank loan documents <br />A copy of bank loan documents is obtained at, or prior to, loan closing to <br />verify the private lender financing. <br />Equity injection documentation <br />Documentation is obtained to verify the equity injection. This may consist <br />of canceled checks, bank statements, or other evidence. <br />Other general closing requirements include thefollowing: <br />• Evidence of required insurance, either a policy or binder showing the IRF <br />as loss payee or mortgagee <br />• Certificate of occupancy if loan was for construction <br />• Borrower's payment of IRF loan fees and out-of-pocket costs <br />31 <br />